AMR Research Releases Supply Chain Market Report Showing 4% Growth Rate In 2004, Reversing Two-Year Decline

SAP, Oracle, and i2 Will Lead Market in 2005

BOSTON, July 6 /PRNewswire/ -- AMR Research has released its annual report on the progress of the Supply Chain Management (SCM) market. The report titled, Market Analytix Report: Supply Chain Management, 2004 - 2009, indicated that SCM market revenues increased 4% in 2004 to just below $5.5B, welcome news for vendors who had faced market contraction in the two previous years.

However, the growth was not evenly distributed across SCM providers: 14 vendors saw their revenue grow by more than 10%, while seven vendors saw their revenue shrink by more than 10%. SAP reigned as the market leader for the second consecutive year with 11% of the share.

"For SCM providers, the past four years have been a tough ride, leaving many vendors to question their strategy while seeing the emergence of a new set of market leaders," said Lora Cecere, vice president of research at AMR Research. "The applications that sell today have changed, as has the way customers buy."

Report Findings and Analysis

The report delivers revenue and growth rates for the top SCM players, as well as growth forecasts through 2009. SCM vendors ranked by 2004 ERP license revenue can be seen in the chart below. The top ten SCM vendors by revenue include the following companies:

                                                 Revenue             Growth
     2004                       Revenue Revenue   Share    Growth     Rate
     Revenue                     Share,  Share,  Forecast,  Rate,   Forecast,
     Rank   Company Name          2003    2004    2005    2003-2004 2004-2005
     1      SAP                   11%     11%     12%        11%        3%
     2      i2 Technologies        8%      6%      5%       -21%      -10%
     3      Oracle*                5%      5%     11%         0%      113%
     4      PeopleSoft             5%      5%      0%         7%     -100%
     5      Manhattan Associates   4%      4%      4%         9%        2%
     6      IBS                    3%      3%      4%         9%        7%
     7      Manugistics            4%      3%      3%       -18%       -4%
     8      Infor Global Solutions 1%      3%      3%       205%        5%
     9      Swisslog               3%      2%      2%        -3%        0%
    10      RedPrairie             2%      2%      2%         6%        4%
    *Oracle acquired PeopleSoft on December 28, 2004.

The top three market leaders have changed over the course of the last two years. Below is a chart from AMR Research's report that identifies the market shift based on estimated 2005 company revenues.

    SCM Market    2003 SCM           2004 SCM           2005 SCM
    Share      Company Revenue    Company Revenue    Company Revenue
    1          SAP ($557M)        SAP ($619M)        SAP ($639M)
    2          i2 Technologies    i2 Technologies    Oracle ($604M)
               ($319M)            ($319M)
    3          Oracle ($282M)     Oracle ($283M)     i2 Technologies
                                                     ($287M)

The report also identifies seven major market forces that shaped the SCM market in 2004:

     * Importance of warehouse management and RFID
     * Growing ERP dominance
     * Increasing requirements for industry-specific applications
     * Market consolidation
     * Move to midmarket
     * Shift from license to services
     * Agile networks and contract manufacturing

AMR Research's depth and breadth of quantitative research is augmented with industry expertise by the firm's research analysts. The Market Analytix Report Series provides technology vendors with targeted marketing and competitive information on key application markets of ERP, SCM, customer management, sourcing and procurement, PLM, and HCM. For more information or a copy of the formal SCM report, please contact AMR Research at (617) 542-6600. Additional information can also be found on the company's website http://www.amrresearch.com.

About AMR Research:

AMR Research provides world class research and actionable advice for executives tasked with delivering enhanced business process performance and cost savings with the aid of technology. Five thousand leaders in the Global 1000 put their trust in AMR Research's integrity, depth of industry expertise, and passion for customer service to support their most critical business initiatives, including supply chain transformation, new product introduction, customer profitability, compliance and governance, and IT benefit realization. More information is available at http://www.amrresearch.com.


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